GoPro isn’t doing so hot these days.
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News of the turmoil surrounding GoPro has sent the stock into a sort of freefall in after hours trading.
GoPro’s effort to become a major player media hit a big speed bump today: Shares plummeted more than 23% in post market trading after it said that sales of its wearable action cameras were “slower than expected” in Q4 – leading it to cut 7% of its workforce, equal to more than 100 jobs.
The San Mateo, California, company had around 1,500 employees at the end of 2015 after hiring more than 500 people that year. GoPro expects to report revenue of $435 million, while analysts were expecting the company to pull in $521 million or thereabouts in its fourth quarter.
GoPro has had a tumultuous run: The company’s stock surged after a blockbuster IPO in 2014 but has been freefalling in recent months.
Its current revenue forecast is more than 30% lower than that in the fourth quarter of 2014. For comparison, it generated $633.9 million in revenue during the same period past year. The Hero 4 Black and Hero 4 Silver came out in late 2014 and sold 2.4 million units during the final quarter.
GoPro pinpoints that disappointment on the October launch of the $500 Hero 4 model. Prices were cut shortly after release due to lower than expected sales. GoPro is now having to lay off its staff as it works to develop new products and categories. It also announced layoffs that amount to 7 percent of its workforce.
The company expected to incur restructuring expenses of around $5 million to $10 million during the first quarter.
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Last week GoPro said at the CES consumer electronics showcase that it will offer a “casual” 360-degree camera – which can be used to create virtual reality images – and team with YouTube to distribute them.
